Key Takeaways
- • Figure Technology Solutions (FIGR), a Nasdaq-listed blockchain fintech company, operates a direct lending ecosystem connecting 380+ partner financial institutions to institutional investors through tokenized loan assets, differentiating itself from competitors by managing the entire value chain on-chain rather than merely wrapping existing assets.
- • CEO Reed Simon stated Figure's strategy enables Korean financial institutions to access and distribute high-quality U.S. credit assets (HELOC and mortgage loans) previously difficult to reach, with tokenized assets sold directly to institutional buyers including BlackRock and Apollo.
- • Figure's competitive advantage lies in originating loans directly within its ecosystem, tokenizing them, operating secondary markets for trading, and distributing to both traditional institutions and DeFi platforms—a model Simon contrasted against RWA platforms that purchase existing securities and lack organic DeFi integration and market liquidity.
- • South Korea has established regulatory framework amendments for tokenized securities issuance and trading, creating opportunities for domestic financial institutions to partner with blockchain-based platforms and participate in asset tokenization markets.
- • On-chain capital markets implementation allows Figure to maintain traditional finance properties while achieving cross-border transmission and asset management efficiency gains that blockchain technology enables.
Summary
Figure Technology Solutions, a blockchain-based loan fintech company founded by Mike Cagney (founder of SoFi) and listed on Nasdaq, is expanding institutional access to tokenized credit assets, particularly targeting Korean financial institutions seeking U.S. mortgage and HELOC exposure. In a recent interview with Maeil Business Newspaper, CEO Reed Simon outlined Figure's strategy to distribute high-quality credit assets through blockchain tokenization, which was previously difficult for Korean institutions to access directly.
The company operates a differentiated business model centered on managing the entire financial value chain on-chain rather than simply tokenizing existing assets. Figure's ecosystem includes more than 380 partner small and medium-sized financial institutions that originate loans through a simplified platform process, with resulting loan assets converted into tokens for purchase by institutional investors and DeFi participants. Simon emphasized that many competing RWA tokenization platforms acquire existing government bonds or funds and apply tokenization as a wrapper—an approach that creates integration friction within DeFi ecosystems, generates repayment complexities, and suffers from severe market liquidity constraints.
Figure's integrated approach directly originates customer loans, converts them into tokens, operates exchanges for secondary trading, and sells to institutional counterparties including BlackRock and Apollo. Simon stated the company's objective is "to implement the entire process of capital markets on-chain while maintaining the essential properties of traditional finance." This model positions blockchain as a mechanism to maximize transmission and asset management efficiency across borders while preserving credit quality standards and institutional safeguards.
South Korea's recent legislative approval of amendments establishing regulatory frameworks for tokenized securities issuance and trading creates structural support for Korean financial institutions to participate in blockchain-based asset distribution. The regulatory environment enables domestic institutions to partner with platforms like Figure to source tokenized U.S. credit assets, addressing a market gap where traditional channels limit access to high-quality international credit instruments. The convergence of Figure's direct lending ecosystem and South Korea's permissive regulatory stance positions the market for expanded cross-border institutional participation in tokenized asset markets.
The company operates a differentiated business model centered on managing the entire financial value chain on-chain rather than simply tokenizing existing assets. Figure's ecosystem includes more than 380 partner small and medium-sized financial institutions that originate loans through a simplified platform process, with resulting loan assets converted into tokens for purchase by institutional investors and DeFi participants. Simon emphasized that many competing RWA tokenization platforms acquire existing government bonds or funds and apply tokenization as a wrapper—an approach that creates integration friction within DeFi ecosystems, generates repayment complexities, and suffers from severe market liquidity constraints.
Figure's integrated approach directly originates customer loans, converts them into tokens, operates exchanges for secondary trading, and sells to institutional counterparties including BlackRock and Apollo. Simon stated the company's objective is "to implement the entire process of capital markets on-chain while maintaining the essential properties of traditional finance." This model positions blockchain as a mechanism to maximize transmission and asset management efficiency across borders while preserving credit quality standards and institutional safeguards.
South Korea's recent legislative approval of amendments establishing regulatory frameworks for tokenized securities issuance and trading creates structural support for Korean financial institutions to participate in blockchain-based asset distribution. The regulatory environment enables domestic institutions to partner with platforms like Figure to source tokenized U.S. credit assets, addressing a market gap where traditional channels limit access to high-quality international credit instruments. The convergence of Figure's direct lending ecosystem and South Korea's permissive regulatory stance positions the market for expanded cross-border institutional participation in tokenized asset markets.
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